Title 20, DECEDENTS, ESTATES AND FIDUCIARIES

If the happening of an event, including marriage, divorce, performance of educational requirements, attaining a specific age or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not…

(a) When exculpatory provision unenforceable.--A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purp…

A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach or ratified the transaction constituting the breach, unless the consent, release or ratification of…

(a) When trustee not personally liable.--Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the …

(a) Contractual liability.--Except as otherwise provided in subsection (c) or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the …

(a) (Reserved). (a.1) Protection from liability.--Unless a person assisting or dealing with a trustee has actual knowledge that the trustee is committing a breach of trust or has knowledge of such facts that the trustee's conduct amounts to bad faith, the person: (1) may assume w…

(a) Contents of certification.--Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: (1) The trust's existence and the date the trust instrum…

If any property is so burdensome or is so encumbered or is in such condition that it is of no value to the trust, the trustee may abandon it. If property without value cannot be abandoned without transfer of title to another or without a formal renunciation, the court may authori…

The provisions concerning the powers, duties and liabilities of a trustee shall be the same as those set forth in the following provisions of this title for the administration of a decedent's or a minor's estate: Section 3184 (relating to discharge of personal representative and …

(a) No impeachment.--No act of administration performed by a testamentary trustee in good faith shall be impeached by the subsequent: (1) revocation of the probate of the will from which the trustee derives authority; (2) probate of a later will or of a codicil; or (3) dismissal …

If the trustee has given a bond as required in accordance with this title, any sale, pledge, mortgage or exchange by a trustee, whether pursuant to a decree or to the exercise of a power conferred by the terms of a trust or of a power under this title, shall pass the full title o…

(a) Scope.--This section applies if a school district is a trustee of land in accordance with all of the following: (1) The land is held for the benefit of the public. (2) The land is not used directly for school purposes. (b) Requirement.-- (1) By January 30, the school district…

Notwithstanding 42 Pa.C.S. § 931 (relating to original jurisdiction and venue), jurisdiction over an action involving land referred to in section 7795 (relating to reports for school district trustees) shall be vested in the court of common pleas in the judicial district where: (…

(a) When to file.--A trustee shall file an account of his administration whenever directed to do so by the court and may file an account at any other time. (b) Where to file.--All accounts of trustees shall be filed in the office of the clerk. Cross References. Section 7797 is re…

(a) Applicability.--This section applies to a person that, at the audit of a trustee's account, has a claim that: (1) arose out of the administration of trust property or arises out of the distribution of trust property upon any interim or final accounting of the trust; and (2) i…

Except as otherwise provided by the trust instrument or by the provisions of section 3543 (relating to income on distributive shares): (1) If a sum of money is directed to be set aside at a specified time as a separate trust, it shall be entitled to income at the annual rate of 5…

A trustee who has received property from a personal representative or from another trustee in distribution of an estate or another trust may annex a copy of an account of the administration of the estate or other trust to an account filed by the trustee covering the administratio…

The provisions concerning accounts, audits and distributions in trust estates shall be the same as those set forth in the following provisions of this title for the administration of a decedent's estate: Section 3511 (relating to audits in counties having separate orphans' court …

(a) Scope.--This section relates to pooled trusts. (b) Organization of pooled trust.-- (1) A pooled trust shall be administered by a trustee governed by a board. The trust may employ persons as necessary. (2) The members of a board and employees of a trustee, if any, shall stand …

This chapter shall be known and may be cited as the Charitable Instruments Act.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Charitable organization." A corporation, trust or other instrumentality governed by Pennsylvania law, including: (1) A …

(a) Effect of deemed provisions.--The governing instrument of a charitable organization is deemed to include provisions, the effects of which are to: (1) Require distributions for each taxable year in such amounts and at such times and in such manner as not to subject the organiz…

The trustees or directors of every charitable organization have the power, acting alone, without the approval of a member, court, donor or beneficiary, to amend the instrument governing the charitable organization in any manner required for the sole purpose of ensuring that: (1) …

Nothing in this chapter precludes a court of competent jurisdiction from authorizing a deviation from the express terms of an instrument governing a charitable organization.

This chapter shall apply to: (1) A charitable organization created after December 31, 1969. (2) A charitable organization created before January 1, 1970, unless a court of competent jurisdiction in a proceeding instituted before January 1, 1972, explicitly decided that the operat…

This chapter shall be known and may be cited as the Pennsylvania Uniform Principal and Income Act.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Accounting period." A calendar year unless another 12-month period is selected by a fiduciary. The term includes a port…

(a) Allocation.--In allocating receipts and disbursements to or between principal and income and with respect to any matter within the scope of this chapter, the following shall apply: (1) A fiduciary shall administer a trust or estate in accordance with the governing instrument,…

(a) Adjustment.--Subject to subsections (c) and (f), a trustee may adjust between principal and income by allocating an amount of income to principal or an amount of principal to income to the extent the trustee considers appropriate if: (1) the governing instrument describes wha…

(a) Conversion.--Unless expressly prohibited by the governing instrument, a trustee may release the power under section 8104 (relating to trustee's power to adjust) and convert a trust into a unitrust as described in this section if all of the following apply: (1) The trustee det…

(a) Standard of review.--A court shall not change a fiduciary's decision to exercise or not to exercise a discretionary power conferred by this chapter unless it determines that the decision was an abuse of the fiduciary's discretion. (b) Remedies.--If a court determines that a f…

(a) General rule.--In the absence of a contrary intent appearing in the governing instrument of an express unitrust, the governing instrument shall be construed in accordance with the following rules: (1) The trustee shall follow an investment policy seeking a total return for th…

(a) Election.--Notwithstanding the foregoing provisions of this chapter, the trustee of a trust held exclusively for charitable purposes may elect to be governed by this section unless the governing instrument expressly provides that the election provided by this section shall no…

After a decedent dies in the case of an estate or after an income interest in a trust ends, the following rules apply: (1) A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property speci…

(a) Distribution of net income.--Each beneficiary described in section 8121(4) (relating to determination and distribution of net income) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using val…

(a) Accrual of income interest.--An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins: (1) on the date specified in the governing instrument; or (2) if no date is specified, on the date an asset becomes subje…

(a) Allocation to principal.--Unless section 8121(1) (relating to determination and distribution of net income) applies, a trustee shall allocate an income receipt or disbursement to principal if its due date occurs before: (1) a decedent dies in the case of an estate; or (2) an …

(a) End of mandatory income interest.--When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share o…

(a) Allocation to income.--Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity, including reinvested cash dividends. (b) Allocation to principal.--A trustee shall allocate the following receipts from an entity to principa…

A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest and shall allocate to principal an amount received as a distribution of principal from such a trust or es…

(a) Separate accounting for business or activity.--If a trustee that conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's ge…

A trustee shall allocate to principal any of the following: (1) To the extent not allocated to income under this chapter, assets received from: (i) a transferor during the transferor's lifetime; (ii) a decedent's estate; (iii) a trust with a terminating income interest; or (iv) a…

(a) Rent.--To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property. This subsection includes an amount received for cancellation or renewal of a …

(a) Interest allocated to income.--An amount received as interest, whether determined at a fixed, variable or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without a…

(a) General rule.-- (1) Except as otherwise provided in subsection (b) or (c), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary. This paragraph includes a contract which insur…

If a trustee determines that an allocation between principal and income required by section 8149 (relating to retirement benefits, individual retirement accounts, deferred compensation, annuities and similar payments), 8150 (relating to liquidating asset), 8151 (relating to miner…